Julius Bär's New CEO Aims to Cut Costs, Improve Profitability by 2028

Julius Bär CEO Stefan Bollinger has announced plans to cut costs by an additional 130 million CHF by 2028, bringing the total savings to around 260 million CHF. The bank aims to reduce its cost-income ratio to under 67% by 2028 and increase new money growth to 4-5% of the asset base by 2028. Bollinger plans to achieve these goals by streamlining costs and hiring 150 new client advisors annually.

Julius Baer Group Ltd. (BAER) has announced a significant cost-cutting initiative and updated strategic targets for the period 2026-2028. The Swiss private bank aims to reduce costs by an additional 130 million Swiss francs (CHF) by 2028, bringing the total cost savings to approximately 260 million CHF [1]. The bank also plans to lower its cost-income ratio to below 67% by 2028 and increase net new money growth to 4-5% of the asset base by the same year.

The new cost-cutting measures, totaling CHF 130 million, will be achieved through streamlining costs and hiring 150 new client advisors annually. Julius Baer aims to complement these cost-saving efforts with a focus on operational efficiency, risk management, and leveraging technology to drive sustainable growth.

Stefan Bollinger, CEO of Julius Baer, stated, "Since January, we have made significant progress on multiple fronts aimed at strengthening our organization and the trust of all our stakeholders. The last 20 weeks have only reinforced my conviction in the uniqueness of this franchise, the high quality and commitment of our employees, as well as the significant underlying business potential" [2].

The bank's strategic review has identified five key priorities: sharpening segmentation and coverage, enhancing its product offering, strengthening top positions in core geographies, increasing front productivity, and driving operational efficiency and cost discipline. These measures form a solid foundation for the bank's transformation process.

Julius Baer will also focus on strengthening risk and compliance management, leveraging technology to enhance the client experience, and fostering a performance and ownership culture. The bank's updated financial targets for the 2026-2028 period include improving net new money growth to 4-5% by 2028, achieving an adjusted cost-income ratio of less than 67% by 2028, and maintaining an adjusted return on CET1 capital of at least 30% over the cycle.

The bank's strategic update presentation will be available via the Julius Baer website and will be webcast in London today.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3S50NP:0-julius-baer-announces-updated-targets-further-cost-cuts-of-159-million/
[2] https://www.tradingview.com/news/eqs:6eea6e736094b:0-julius-baer-sets-focused-strategy-to-unleash-its-full-potential-through-disciplined-execution/